Appendix J Minutes of the meeting of the Panel on Development of the Legislative Council (Extract)

Civil Engineering and Development Department and Planning Department Agreement No. CE32/2011 (CE) Tung Chung New Town Extension Study Public Engagement Report (Stage 2) Appendix J Minutes of the meeting of the Panel on Development of the Legislative Council (Extract) 219844-REP-084-02 Issue 1 June 2014 \\HKGNTS22\GEO\ACTUAL JOB\219844\13-00 OTHER WORKING FILES\PE2 REPORT\ISSUE 11\TC_PE2_REPORT_ENG_V11_20140814.DOC

立法會 Legislative Council LC Paper No. CB(1)56/13-14 (These minutes have been seen by the Administration) Ref : CB1/PL/DEV/1 Panel on Development Minutes of meeting held on Tuesday, 28 May 2013, at 2:30 pm in Conference Room 3 of the Legislative Council Complex Members present : Dr Hon LAU Wong-fat, GBM, GBS, JP (Chairman) Hon Tony TSE Wai-chuen (Deputy Chairman) Hon James TO Kun-sun Hon CHAN Kam-lam, SBS, JP Hon Abraham SHEK Lai-him, SBS, JP Hon Frederick FUNG Kin-kee, SBS, JP Hon Cyd HO Sau-lan Hon CHAN Hak-kan, JP Hon CHAN Kin-por, BBS, JP Dr Hon Priscilla LEUNG Mei-fun, JP Hon IP Kwok-him, GBS, JP Hon Mrs Regina IP LAU Suk-yee, GBS, JP Hon Alan LEONG Kah-kit, SC Hon LEUNG Kwok-hung Hon Albert CHAN Wai-yip Hon Claudia MO Hon Michael TIEN Puk-sun, BBS, JP Hon James TIEN Pei-chun, GBS, JP Hon WU Chi-wai, MH Hon Gary FAN Kwok-wai Hon CHAN Chi-chuen Hon CHAN Han-pan Dr Hon Kenneth CHAN Ka-lok Hon CHAN Yuen-han, SBS, JP Hon LEUNG Che-cheung, BBS, MH, JP

-2- Hon Alice MAK Mei-kuen, JP Dr Hon KWOK Ka-ki Dr Hon Fernando CHEUNG Chiu-hung Dr Hon CHIANG Lai-wan, JP Ir Dr Hon LO Wai-kwok, BBS, MH, JP Members attending : Hon Starry LEE Wai-king, JP Hon TANG Ka-piu Members absent : Hon Emily LAU Wai-hing, JP Hon Kenneth LEUNG Public officers attending : Agenda item VIII Mr Thomas CHAN Chung-ching, JP Deputy Secretary for Development (Planning & Lands) 1 Mr Wilson SO Ying-leung Assistant Director of Planning/New Territories Planning Department Mr Ivan CHUNG Man-kit District Planning Officer/Sai Kung & Islands Planning Department Mr Bosco CHAN Bun-pui Deputy Project Manager (HK Island & Islands), Hong Kong Island and Islands Development Office Civil Engineering and Development Department Mr David LO Kwok-chung Chief Engineer/Islands Civil Engineering and Development Department Clerk in attendance : Ms Sharon CHUNG Chief Council Secretary (1)6 Staff in attendance : Mr Anthony CHU Senior Council Secretary (1)6

-3- Mr Fred PANG Council Secretary (1)6 Ms Christina SHIU Legislative Assistant (1)6

Action -4- VIII Tung Chung New Town Extension Study -- Stage 2 Public Engagement (LC Paper No. CB(1)1077/12-13(07) -- Administration's paper on Tung Chung New Town Extension Study -- Stage 2 Public Engagement LC Paper No. CB(1)1077/12-13(08) -- Paper on Tung Chung New Town Development Extension Study prepared by the Legislative Council Secretariat (Background brief)) 86. With reference to the Administration's paper on "Tung Chung New Town Extension Study -- Stage Two Public Engagement" (LC Paper No. CB(1)1077/12-13(07)), DS/DEV(P&L)1 briefed members on the progress of the Tung Chung New Town Extension Study ("the Study"). With the aid of a powerpoint presentation, District Planning Officer/Sai Kung & Islands, Planning Department introduced the initial land use options formulated for the Tung Chung New Town extension under the Stage 2 Public Engagement ("PE") of the Study. (Post-meeting note: A soft copy of the powerpoint presentation materials (LC Paper No. CB(1)1162/12-13(02)) was circulated to members by email on 29 May 2013.) Planning for the Tung Chung New Town extension 87. Mr CHAN Han-pan said he was pleased that the Administration had taken on board some of the suggestions of the Democratic Alliance for the Betterment and Progress of Hong Kong on the development of Tung Chung. Referring to the proposed reclamation in Tung Chung East and Tung Chung West, he said that as the Stage 2 PE for proposed reclamation outside Victoria Harbour was still in progress, more discussion between the Administration and the community on the subject was needed. Mr CHAN asked if the Administration would set up a committee to oversee the planning and development of Lantau, as he had proposed earlier to ensure that a coordinated and balanced development in Lantau would be achieved. In reply, DS/DEV(P&L)1 said that when formulating the plan for further development in Tung Chung, the Administration had made reference to the Revised Concept Plan for Lantau, which was released in 2007. The major objective of the Stage 2 PE of the Study was to present to the public the initial land use options for the further development in Tung Chung and to seek broad consensus on the planning direction, scale and area of development for subsequent formulation of the Outline Development Plan for the Tung Chung New Town extension. The Administration did not have

Action -5- any concrete plan at this stage to set up a committee to coordinate the planning and development in Lantau but would consider the best way for taking forward the various development projects in Lantau in a coordinated manner in due course. 88. The Deputy Chairman highlighted the importance for the further development of Tung Chung to dovetail with the development of North Lantau. The Administration should ensure that Tung Chung would be well connected internally and externally. Moreover, there should be an adequate supply of local job opportunities. DS/DEV(P&L)1 reiterated that the planning of Tung Chung had taken into account the overall development of Lantau. One of the objectives of the Study was to map out the way for the extension of Tung Chung to help address territorial housing demand. Connectivity and job opportunities were among the issues to be studied and planned. In response to the Deputy Chairman's enquiry, DS/DEV(P&L)1 added that the Administration had no plan at this stage to develop a container terminal at North Lantau. 89. Noting that a proposed Lantau Logistics Park ("the Park") would be located in the vicinity of the Tung Chung New Town, the Deputy Chairman was concerned about the impact of the operation of the Park on the existing communities in the Tung Chung New Town and future residents in the proposed extension areas. The Administration was requested to provide information on the Park, including whether it would be developed by the Administration, the development timeframe and the progress of the project. (Post-meeting note: The Administration's supplementary information was circulated to members vide LC Paper No. CB(1)1323/12-13(01) on 17 June 2013.) 90. Dr KWOK Ka-ki pointed out that the existing Tung Chung New Town was considered a planning blunder with no emergency ward service, no market provided by the Food and Environmental Hygiene Department and, and high transportation costs for the residents. He expressed disappointment that the Administration had not addressed the concerns of Tung Chung residents over the years. In response, DS/DEV(P&L)1 said that in planning the Tung Chung New Town extension, the Development Bureau and the Planning Department would coordinate with other relevant bureaux/departments to ensure adequate provision of community, transportation and recreational facilities to meet the needs of the future residents. Housing developments in Tung Chung 91. Noting that a mix of public and private housing would be adopted for housing developments in the Tung Chung New Town extension, Mr CHAN Han-pan enquired about the future ratio for public rental housing ("PRH"), home ownership scheme ("HOS") and private housing in the

Action -6- extension areas. Assistant Director of Planning/New Territories, Planning Department ("AD(NT)/PlanD") advised that the existing public to private housing ratio in terms of population in the Tung Chung New Town was about 60:40 and there were public views expressed during the Stage 1 PE that the further development of Tung Chung should strike a balance between private and public housing. To take on board the public views, it was tentatively proposed in the initial land use options that the new housing developments in Tung Chung East and Tung Chung West would adopt a public to private housing ratio of 40:60 with a view to attaining a balanced housing mix for the overall new town development. The Administration would solicit public views on the housing mix. The final housing mix in the Tung Chung New Town extension would be further reviewed when formulating the Outline Development Plan. 92. On the mix of private and public housing, the Deputy Chairman cited the planning of Tin Shui Wai as an example and cautioned that over-concentration of any type of housing in an area might create social and economic problems. Dr Fernando CHEUNG opined that more PRH units should be provided in newly developed areas, taking into consideration that, as reported by the media, more than 170 000 people were residing in sub-divided flats with poor living conditions. He queried the justifications for providing more private housing units than public housing units in the Tung Chung New Town extension areas. Mr WU Chi-wai suggested that the Administration should conduct an analysis, based on the take-up of PRH units in Tung Chung, on whether people would be willing to move into new housing developments in Tung Chung and then to map out an appropriate ratio of public to private housing. He stressed that the Administration should not repeat the mistake of moving too many grassroot-level people to a new town where there were inadequate infrastructure facilities and employment opportunities. In response, AD(NT)/PlanD said that the Administration would closely liaise with concerned bureaux/departments and also collect relevant information from the Hong Kong Housing Authority to know more about the preference of PRH applicants for the locations of the PRH units allocated to them. 93. Mr LEUNG Che-cheung commended the proposed stepped building height design for the housing developments along the waterfront, which would maximize the views towards the sea from the vantage points. Noting that a maximum plot ratio of 6 was adopted for some sites, he asked about the heights of the buildings at these sites and their impact on the environment. Referring to the proposed development of a marina under one of the initial land use options, he asked if the Administration intended to provide private housing rather than public housing at the residential sites near the marina. AD(NT)/PlanD advised that during the Stage 1 PE, the Administration had received public views that given its coastal location, Tung Chung had great potentials for the development of marina, which would stimulate economic activities and bring benefits to the local community. As such, a marina was

Action -7- proposed under the land use option themed "Economic Vibrancy" for Tung Chung East for public consultation. 94. Mr TANG Ka-piu declared that he was a member of the Islands District Council ("DC"). Pointing out that the Stage 2 PE had not been discussed by the Islands DC, he said that it was more desirable for the Administration to first consult the local DC on a development proposal before discussing it at LegCo. Concerned about the supply of housing to meet the pressing demand, he asked if the Administration had a separate plan, other than the reclamation projects proposed under the Study, for providing residential sites on Government land in Tung Chung. 95. Mr Gary FAN queried for whom the Tung Chung New Town extension was developed and enquired about the number of residential sites in the extension areas to which the "Hong Kong Property for Hong Kong People" ("HKPHKP") measure would apply. DS/DEV(P&L)1 responded that all new towns were developed for Hong Kong people. He supplemented that the Hong Kong 2030 Planning Vision and Strategy Study had concluded that land was required in the long run to meet future population growth and various demands of the community including economic development. Given that there had been a shortage in the supply of land which would hinder the development of Hong Kong, the Administration had adopted a multi-pronged approach in increasing land supply, including the Study. Regarding the application of the HKPHKP measure on the future residential sites, he advised that it would be considered individually for each site when the sites were ready for sale, taking into account the market situation and other relevant considerations prevailing at that time. Given that the development of the Tung Chung New Town extension was still at a planning stage, the Administration would listen to public views on how the land resources in the extension areas should be used. 96. Mr FAN disagreed that the application of HKPHKP measure in the Tung Chung New Town extension should only be determined at the time when the residential sites was ready to be put up for sale. He opined that, for a long-term planning project like the development of the Tung Chung New Town extension, the provision of housing should follow a population policy and be well planned in advance. He further remarked that, according to his observation, it was the public's aspiration that all new residential sites for private housing should adopt the HKPHKP measure to solve the pressing housing shortage problem. Connectivity for Tung Chung 97. Noting that the total population for Tung Chung could be increased to more than 270 000 with the new extension, Mr LEUNG Che-cheung opined that the external connectivity of the new extension areas should be railway-based, to be complemented by feeder bus service connecting various

Action -8- housing developments to the railway stations. To achieve a green living environment in the new extension areas, he suggested that low emission vehicles, such as electric buses, might be used for providing feeder service. AD(NT)/PlanD said that the Administration was mindful of the need to provide adequate infrastructural facilities and connectivity for the future extension of Tung Chung. Two new MTR stations had been proposed in Tung Chung East and Tung Chung West respectively in the initial land use options to cater for the need of the future population of the new extension areas and enhance the connectivity of Tung Chung to other parts of Hong Kong. The Administration would also take into account the development of North Lantau when conducting traffic impact assessments for the new extension areas. 98. Mr TANG Ka-piu enquired, in case the proposed reclamation at Tung Chung West was found unacceptable under the Environmental Impact Assessment ("EIA") process, whether the provision of new MTR stations and MTR extension in Tung Chung would be implemented. AD(NT)/PlanD advised that the Tung Chung West Station had been included in the review and update of the Railway Development Strategy 2000, a consultation on which was being conducted from February to May 2013. Given the latest planned population for the proposed PRH at Area 39 of Tung Chung and the need of the existing residents of Yat Tung Estate, as well as the development planned for Tung Chung West, he believed that the proposed Tung Chung West Station had its merits and would not necessarily hinge on the EIA of the proposed reclamation works in Tung Chung West. 99. Miss Alice MAK shared other members' view about the importance of connectivity for future residents in the Tung Chung New Town extension. She urged the Administration to ensure that adequate transport infrastructure, including a railway network, would be provided in the extension areas. Given that the proposed waterfront promenade in Tung Chung East and Tung Chung West could easily connect the areas to other parts of North Lantau, she suggested that the Administration should promote cycle tourism in Tung Chung and construct a ferry pier for cyclists. Mr WU Chi-wai proposed that consideration could be given to encouraging the use of the bicycle as a major means of transportation within Tung Chung. 100. AD(NT)/PlanD advised that, under the present proposal, there would be two new railway stations, complemented by road and pedestrian networks and waterfront promenades. The Administration would also carefully plan the cycle track network to enhance the connectivity within Tung Chung in the Outline Development Plan stage. Employment opportunities 101. Mr LEUNG Che-cheung expressed concern about the employment opportunities for the new population in the Tung Chung New Town

Action -9- extension and suggested that high-technology industries be developed in the extension areas to attract middle-class professionals to move in. 102. Mr WU Chi-wai pointed out that the provision of sufficient employment opportunities was essential for the new population intake. He asked if the Administration would introduce measures to boost the number of job opportunities in Tung Chung. If a majority of the residents would have to travel outside of Tung Chung daily for work, good connectivity between Tung Chung and other parts of Hong Kong would be pivotal. Dr Fernando CHEUNG and Miss Alice MAK urged the Administration to provide sufficient job opportunities for the new population in Tung Chung. Miss MAK added that it was important to create economic vibrancy in Tung Chung, including the extension areas, for generating job opportunities for the local population. She pointed out that there was a misunderstanding among the public that the Hong Kong International Airport had created lots of job opportunities for residents of Tung Chung. In fact the high transportation costs for travelling from Tung Chung to the Airport were not affordable to most of the residents. Besides, many jobs at the Airport required employees to work on shifts, which might not be preferred by the residents. She requested the Administration to update the Panel regularly about the progress of the project, in particular the plans to provide sufficient local job opportunities. 103. AD(NT)/PlanD said that under the two initial land use options local shopping and retail facilities would be provided to bring in economic activities and generate job opportunities. Under the option themed "Economic Vibrancy", more land would be reserved for commercial development; a higher non-domestic plot ratio would be adopted at the Metro Core Area to help create more job and business opportunities; and about 450 000 square metres of floor area would be planned in Tung Chung East for office/regional retail/hotel uses. Environmental impact 104. Mr TANG Ka-piu expressed concern about the impact of the proposed reclamation in Tung Chung East on Tai Ho Wan, a place of high ecological value. As regards the proposed limited reclamation of 14 hectares at Tung Chung West, he was worried that the buildings at the new reclamation area would cause an adverse impact on the breezeway at Area 39 near Yat Tung Estate. 105. AD(NT)/PlanD advised that in preparing the land use proposals for the Stage 2 PE, the Administration had ensured that reclamation in Tung Chung East would not encroach upon Tai Ho Wan in view of its ecological value. For Tung Chung West, the proposed reclamation should not have any adverse impact on the breezeway and hence air ventilation of the area, since the scale of reclamation had been reduced and limited to the north-eastern

Action -10- part of Tung Chung Bay. He assured members that various technical assessments including EIAs would be conducted to ensure that the new town extension including reclamation proposals would not result in adverse impacts on the environment, ecology and air ventilation. [To allow sufficient time for discussion, the Chairman directed the meeting be extended for 15 minutes.] 106. Noting that the scale of reclamation in the present proposal was quite significant, Dr Fernando CHEUNG expressed grave concern about the adverse impact of reclamation on the environment. He pointed out that the land beside Tung Chung River had already been damaged by flooding and was worried that reclamation works might worsen the situation. On the air quality in Tung Chung, he said that it was well known that it was among the worst in Hong Kong. He expressed doubt on whether Tung Chung was a suitable place for further housing developing and asked the Administration about the measures to improve the air quality. 107. Deputy Project Manager (HK Island & Islands), Hong Kong Island and Islands Development Office, Civil Engineering and Development Department advised that the extent of the proposed reclamation in Tung Chung West had been reduced to 14 hectares in view of the ecological value of the area. As for Tung Chung East, a maximum reclamation of about 120 hectares was proposed but the works would avoid altering the water flow and preserve the existing biodiversity of Tai Ho Inlet, which was the primary water inlet for Tai Ho Wan with high ecological value. Members' concern on air quality in the extension areas would be duly addressed in the EIAs to be conducted as it was one of the issues to be studied. He added that the Administration would adopt enhanced air quality objectives in 2013 to better protect public health. 108. Miss CHAN Yuen-han said that the Administration should ensure that places of high ecological value would be well protected when developing Tung Chung West. In Tung Chung East, the beautiful Tai Ho Stream should be preserved. She was concerned that the current plan to preserve the areas of high ecological value in Tung Chung East and Tung Chung West might change after the Stage 2 PE. Miss CHAN requested the Administration to report the progress of the Tung Chung New Town extension project to the Panel regularly and said that members belonging to the Hong Kong Federation of Trade Unions would closely monitor the project. 109. AD(NT)/PlanD advised that the objective of the Stage 2 PE was to seek broad consensus on the planning direction, scale and area of further development of Tung Chung. The proposals under the initial land use options, if supported by the public, would form the basis for preparing the Outline Development Plan for the Tung Chung New Town extension. He assured members that no reclamation had been planned at Tai Ho Wan as the area was scenic and of high ecological value. The Administration would

Action -11- preserve the water inlet of Tai Ho Wan in Tung Chung East and ensure that the area would not be affected by reclamation works. EIAs would duly be carried out to study the impact of reclamation on the environment in detail. When formulating the Outline Development Plan for the Tung Chung New Town extension, the Administration would take into account the EIA findings. The public would be consulted on the Outline Development Plan at a later stage. 110. Dr KWOK Ka-ki expressed concern that any works in Tung Chung West would affect the water flow to the mangroves in the area. AD(NT)/PlanD advised that the works under the current proposal would not affect the mangroves in Tung Chung West. As to Tung Chung River, conservation-related uses would be provided on both sides of it to preserve the ecology. Responding to Dr KWOK Ka-ki's enquiry on whether the Administration would consider developing the fallow agricultural land in Tung Chung West to reduce the extent of reclamation, AD(NT)/PlanD said that the Administration had proposed developing low-density housing units on some of the fallow agricultural land in Tung Chung West taking account of the rural and village context of the area. Besides, to capitalize on the improved accessibility due to the proposed construction of the Tung Chung West Station, two sites near Area 39 of Tung Chung and further south along Tung Chung Road were proposed for high-density housing developments up to domestic plot ratios of 5 to 6. 111. With reference to the proximity of the Tung Chung New Town extension to the Airport and other transport infrastructures, the Deputy Chairman enquired about the noise impact on the future residents of the extension areas and the mitigation measures. Miss CHAN Yuen-han also pointed out that the noise pollution problem in Tung Chung was serious due to its location. AD(NT)/PlanD replied that appropriate buffers would be provided for the new extension areas to minimize potential noise impact. Moreover, the potential impact of the noise exposure forecast 25 had also been taken into account in the initial land use options and was already shown on the map on page 9 of Annex 2 to the Administration's paper.